Penalty Rates Cuts – Hospitality & Retail Industries

Sunday and public holiday penalty rates will be reduced for full-time and part-time workers in the hospitality, retail and fast-food industries, the Fair Work Commission has ruled.

WHAT’S ACTUALLY CHANGING?

Full-time and part-time hospitality workers will have their Sunday penalty rate cut from 175% to 150%

Full-time and part-time retail workers will have their Sunday penalty rate cut from 200% to 150%

Full-time and part-time fast food workers will have their rate cut from 150% to 125%.

Public holiday rate in retail, hospitality, and fast food will also be cut.

Casual workers in the retail and fast-food industries will also see their pay cut but rates for casuals in hospitality will remain the same.

The cuts to public holiday rates will start from 1st July 2017.

WILL IT AFFECT ME?

The workers who will be hardest hit are those in the retail, hospitality and fast food industries. Aussie’s who rely on penalty rates generally earn a relatively low wage. The ACTU estimates the FWC decision will cost low-paid workers up to $6000

IF YOU WORK IN FAST FOOD

Fulltime and part-time level one fast-food workers will have Sunday penalty rates reduced from 150 per cent to 125 per cent.

Level two and three employees will stay at 150 per cent.

IF YOU WORK IN HOSPITALITY

Fulltime and part-time hospitality workers will have Sunday rates slashed from 175 per cent to 150 per cent.

Sunday rates for casuals will remain at 175 per cent.

If you’re on the national minimum wage, $17.70 per hour, an eight-hour Sunday shift would have earnt you about $248.

Under the changes, that drops to $212 — a difference of about $35 for the shift.

For someone earning, say, $30 per hour, the hourly rate would drop from $52.50 to $45. Instead of $420 for an eight-hour shift, they would now get $360.

On public holidays, rates have been cut for fulltime and part-time workers have also been cut from 250 per cent to 225 per cent. Casuals will remain at 250 per cent for public holidays.

IF YOU WORK IN RETAIL

Fulltime and part-time retail workers will have Sunday rates reduced from 200 per cent to 150 per cent, while casuals will be reduced from 200 per cent to 175 per cent.

As in hospitality, fulltime and part-time retail workers have been cut from 250 per cent to 225 per cent, but casuals will remain at 250 per cent.

IF YOU WORK IN PHARMACY

Sunday rates for pharmacy workers between 7am and 9pm will be reduced from 200 per cent to 150 per cent for fulltime and part-time workers.

Casuals will be reduced from 200 per cent to 175 per cent.

WHEN DO THE CHANGES KICK IN?

It not clear when the Sunday pay rate cuts take effect. However, we know that the changes to public holiday rates begin on July 1.

Early and late night work loadings in the restaurant and fast food awards will take effect in late March.